Finances have become the dominant concern of hospital administrators and department heads. Clinical Engineering (CE) can make significant contributions to the financial health of a hospital by increasing CE departmental productivity and by improving the utilization of resources in clinical departments. Several measures of productivity and cost-effectiveness have been applied to the Biomedical Engineering Department of the University Medical Center. The Department provides a wide range of technical services that are integrated into the clinical and administrative activities of the hospital. The Department has accumulated data regarding the financial benefits provided to the hospital, and the data reveal significant savings which show that CE can be viewed as a cost-effective investment. The greatest savings occur in capital equipment acquisition (selection and installation) and maintenance, and result from CE involvement in clinical activities and administrative decision making.